Panic caused by the Covid-19 pandemic continued to grip Indian share markets today as benchmark indices tumbled 10 percent in early session to hit the lower circuit, triggering a trading halt for the first time since May 2009.
Ridham Desai, head of India Equity Research and India Equity Strategist at Morgan Stanley, recommended buying at this point. “Don’t go all in but time to put in some money,” he said. Valuation and sentiment tells me to buy, as good businesses are available at cheaper prices, he said.
‘Extent Of Damage Is Not Gaugeable’
Markets have reacted due to a lot of algo-driven orders placed globally and due to the massive passivisation in the industry, said Manish Sonthalia, associate director and chief investment officer (portfolio management services) at Motilal Oswal Asset Management Company Ltd.
The extent of damage in this scenario is not “gaugeable”, he said.
- Buyback is very much in the offing, expect many companies announcing it.
- Best way to mitigate the risk is to stay unleveraged.
- Its prudent to go with the financial sector with high Tier-I capital.
- Consumption and pharma sector is on the radar, avoid commodities and metals.
- Good opportunity to load stocks as see money making opportunity in the months to come.
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